GM's Opel To End Omega Model '03; Replacement '05

RUESSELSHEIM -September 3 Dow Jones reported that General Motors Corp.'s German automaking unit, Adam Opel AG , may phase out the aging top-of-the-line Omega model from the second half of 2003, a person close to the company said Tuesday.

The carmaker would then build an Omega successor from around 2005, the person said. The plan hasn't yet been formally approved, but it is likely, he added.

Sales of the nine-year-old car have been dropping, though it is profitable as costs have long been amortized, the person said.

In the first seven months of the year, Omega sales in Western and Central Europe tumbled 30% to 17,835 from 25,409 in the same period of 2001. In full- year 2001, Omega sales dropped 26% to 38,459 from 51,719 in 2000.

Until the replacement in 2005, demand for a high-end, comfortable car could be met by the Signum version of the new Vectra line, the person said.

Opel said Tuesday that it plans to start building the Signum - which it bills as "the new business class of Opel" - in spring 2003.

Industry watchers have long speculated that Opel would cancel the Omega due to the disappointing sales.

As part of its "Olympia" turnaround, the carmaker has been working to revitalize its product portfolio as well as trim costs and capacity.

Company Web site: http://www.opel.com